Yes....last Thursday 18th may bought 100 shares of Dr Reddy Labs @1975.... for my first contrarian investing....from 2015 after making a lifetime high of @4386 today Dr reddy is fairly to little cheaply priced....but not very cheaply priced as per the Value of the stock..... but still it can go down by 20% to 30% from current price@1975.... but then it is like firing at a target in the dark....you are not sure the target will be hit.....so you are never ever sure when and what price the bottom will be formed....so it makes sense to average at the bottom...i.e. at the trough then average at the peak prices....So buying in STAGGERED MANNER is the most important thing to be kept in mind when buying in a downtrend bottom selling climax cycles...Never ever buy in lump sum quantity...always extend your purchasing period in a downtrend...Bottom should be placed in pharma sector by August September 2018...also the correction in pharma sector is so slow from 2015 and it is similar to boiling frog syndrome...
Pendulum (Greed and Fear): the pendulum of pharma sector is swinging towards the Fear Pessimism and despondency side..it is the stage where market participants have lost complete hope in the pharma sector recovery...but we still have not reached the Despondency selling climax cycle yet...so the bottom is not yet formed...
Psychology: in contrarian investing it makes 100% sense to let the stock prices to come to you rather then you running after the stock for purchasing.... generally the B grade investors I mean the Reflexive type investor's fall for these anamoly while the A grade Reflective type investors wait patiently for the stocks to come to them.... I still feel one more downfall is left price wise in the pharmaceutical sector and then sideways correction for next 4 to 6 years at least....
Elliot Wave: it is clearly showing downtrend bear correction and we are presently in the 5th wave of correction....on long term basis theory....but still the capitulation process has not started and once the capitulation phase starts... thereafter it will be followed by the despondency phase which will put the final stamp that the bear phase cycle is about to get over....but the prices after going down from current levels and forming a new bottom pricewise.... thereafter the sector will be range bound for few more years before the time wise CorrEcTion gets over....
Waiting Game: so today one should play the game of delayed gratification and patience and buying when value emerges and therefore buying below intrinsic value.... when the world is pounding missiles on the sector continously with zero hopes of recovery and finally selling in disbelief.....that is the day you get Bargain....highly cheaply priced stocks..... below intrinsic value....by playing the waiting game and purchasing below fair /intrinsic value...the Risk Reward ratio is always favourable in favour of the buyer....maybe by August/September 2018 the bottom is in placed and a life time buying opportunity is created for long term investing...
Corollary the above article also applies to Sun Pharma.....Lupin.....
Caution: The above article is not a recommendation to buy or sell and are my personal opinions and views.....please consult your certified financial advisor when investing in any form of financial assests....do your own analysis and study.....also I am not a financial advisor....it is only my hobby....
Pendulum (Greed and Fear): the pendulum of pharma sector is swinging towards the Fear Pessimism and despondency side..it is the stage where market participants have lost complete hope in the pharma sector recovery...but we still have not reached the Despondency selling climax cycle yet...so the bottom is not yet formed...
Psychology: in contrarian investing it makes 100% sense to let the stock prices to come to you rather then you running after the stock for purchasing.... generally the B grade investors I mean the Reflexive type investor's fall for these anamoly while the A grade Reflective type investors wait patiently for the stocks to come to them.... I still feel one more downfall is left price wise in the pharmaceutical sector and then sideways correction for next 4 to 6 years at least....
Elliot Wave: it is clearly showing downtrend bear correction and we are presently in the 5th wave of correction....on long term basis theory....but still the capitulation process has not started and once the capitulation phase starts... thereafter it will be followed by the despondency phase which will put the final stamp that the bear phase cycle is about to get over....but the prices after going down from current levels and forming a new bottom pricewise.... thereafter the sector will be range bound for few more years before the time wise CorrEcTion gets over....
Waiting Game: so today one should play the game of delayed gratification and patience and buying when value emerges and therefore buying below intrinsic value.... when the world is pounding missiles on the sector continously with zero hopes of recovery and finally selling in disbelief.....that is the day you get Bargain....highly cheaply priced stocks..... below intrinsic value....by playing the waiting game and purchasing below fair /intrinsic value...the Risk Reward ratio is always favourable in favour of the buyer....maybe by August/September 2018 the bottom is in placed and a life time buying opportunity is created for long term investing...
Corollary the above article also applies to Sun Pharma.....Lupin.....
Caution: The above article is not a recommendation to buy or sell and are my personal opinions and views.....please consult your certified financial advisor when investing in any form of financial assests....do your own analysis and study.....also I am not a financial advisor....it is only my hobby....
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